Efforts made to improve logistics services

Update: 15-05-2019 | 14:56:46

Although there is no airport or seaport like some other localities in the Southern key economic region, Binh Duong province strives to improve logistics services to meet the demand for cargo transport of enterprises.

Experts said that Binh Duong needs to form a regional logistics center in accordance with the plan approved by the Government to create a boost for the development in new period. In photo: Cargo transport at ICD Song Than (Thuan An town).

To make good use of advantages

Binh Duong has no airports and seaports, while river ports are limited in height, thereby affecting the development of logistics services. However, Binh Duong planned 9 river ports and now 4 ports are in operation, including: Binh Duong general port, Thanh Phuoc port, Ba Lua port, and An Son port. Ghenh bridge is raised to 7m in height, and Binh Loi bridge has been improved similarly, it is a favorable condition for Binh Duong to develop logistics services strongly.

In recent years, Binh Duong has well exploited its advantageous location near Ho Chi Minh City and the existing infrastructure to boost the growth of logistics services. Besides, due to the high growth rate of import and export in the province, many businesses have chosen Binh Duong as a place to carry out customs procedures and gather import and export goods. This is a favorable condition to attract investment in logistics services in the province.

Although logistics service has not appeared in Binh Duong for a long time, it has made a good role of connecting manufacturers with the market, thanks to the synchronous and modern technical infrastructure system. Due to the capacity for investment attraction, stable economic high growth rate, Binh Duong is one locality with the number of warehouses and transport services accounting for over 51% total supply of warehouses in the Southern area - the region with the top warehouse supply source in the country.

According to Binh Duong Customs Department, the province has now 21 bonded warehouses, 4 CFSs, 2 ICDs, and 31 customs branch offices to provide logistics services to import and export activities. The system of bonded warehouses, CFSs, ICDs, and customs clearance offices in the province have met the demand of the current import and export manufacturers and activities, including many largest modern managements system of bonded warehouses. With the policy to facilitate investment attraction in socio-economic development, Binh Duong has many solutions to support enterprises in developing logistics services.

To increase investment in logistics

Logistics is currently one of the industries that attract special attention of domestic and foreign investors. Investment projects in logistics field in Binh Duong province have larger scale, high level of specialization, provide full and diversified services. Currently, organizations such as Di An Port Group and Logistics Center, ICD Song Than, Binh Duong Port, ICD An Son Inland Waterway Port ... have been contributing significantly to promoting provincial economic development, especially in the field of domestic goods transport, distribution, and import export.

However, according to many experts, logistics enterprises in the province have a relatively fast growth in terms of quantity, size and service quality, but most of them only provide 1PL logistics services (self-service logistics) and 2PL (partly logistics). Although Binh Duong has some large logistics centers that provide 3PL services (outsourced logistics), this number is very small. In addition, service providers have not yet had close cooperation and mutual support in providing market information and customer information, so business activities have not been highly efficient.

In addition, logistics enterprises are unevenly distributed, mainly concentrated in Di An town, Thuan An town. In Ben Cat Town, Tan Uyen town, and some northern districts of the province, due to the small number of enterprises, logistics services have not attracted much attention. In addition, traffic congestion still occurs frequently during peak hours on some key roads of the province, and tends to increase, thus causing difficulties for logistics development in the area.

In order to bring into play the potential, to meet the increasing demand for goods transportation of the province, Nguyen Xuan Phuc, General Director of U&I Logistics Joint Stock Company, said the province needed to develop appropriate logistics development strategy, focus on re-planning transport infrastructure and logistics infrastructure; and create a favorable business environment for the logistics industry. Besides, the province needs to encourage and act as a bridge for local companies to enter into joint ventures with foreign companies to establish a global logistics chain. Along with that, based on the logistics development strategy, the province should issue appropriate policies and guarantee feasibility as well as control the implementation of these policies.

Reported by Khanh Vinh – Translated by Ngoc Huynh

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Efforts made to improve logistics services

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